Marshall Islanders will from next year have access to improved communications as a new submarine fiber optic cable will be laid from there to Guam.
Currently, phones and dial up internet in the Marshalls are connected via satellite, and there's no broadband.
Our correspondent, Giff Johnson, says the initiative will have many benefits.
"If they can increase the bandwidth, the speed and reduce the rates, what will happen is the schools that are not now connected to the internet can get on, students can start using the internet, we'll start seeing cellphones connected to the internet and just a dramatic expansion of service and usage in the Marshall Islands."
Giff Johnson says work will start in two weeks and is expected to be completed by April next year.